ORPEA: CONTINUATION OF DISCUSSIONS WITH FINANCIAL CREDITORS

Rhea-AI Summary

ORPEA (Euronext Paris: ORP) is undergoing significant financial restructuring due to recent fluctuations in its share price. The Group is negotiating the equitization of €3.8 billion in unsecured debt and plans a share capital increase between €1.3 billion and €1.5 billion to fund its Refoundation Plan. This move will lead to substantial dilution for current shareholders not participating in the capital increase. Ongoing discussions with creditors and investors are taking place under the supervision of a conciliator, but outcomes cannot be guaranteed.

Positive

• None.

Negative

• Share capital increase could lead to significant dilution for existing shareholders.
• Uncertainty surrounding the outcome of negotiations with creditors and potential financial restructuring.

PUTEAUX, France--(BUSINESS WIRE)-- Regulatory News:

Considering the unusual evolution of its share price observed over the last days, ORPEA (Paris:ORP) reminds that, in accordance with the announcements made in the press releases published at the end of last year, the Group has engaged in the negotiation of a drastic financial restructuring comprising the equitization of €3.8 bn of ORPEA SA's unsecured debt and a share capital increase for an amount between €1.3 bn and €1.5 bn in order to finance its Refoundation Plan and reach a sustainable financial structure.

ORPEA reminds that the implementation of these share capital increases will result in a massive dilution for existing shareholders who would decide not to participate.

Discussions are still on-going between ORPEA, its financial creditors and third-party investors under the conciliation procedure opened by the President of the specialised Commercial Court of Nanterre, under the aegis of the conciliator. The Company cannot guarantee the outcome of these discussions.

The Company will continue to inform the market through its corporate communications, in compliance with its legal and regulatory obligations.

About ORPEA

ORPEA is a leading global player, expert in the care of all types of frailty. The Group operates in 22 countries and covers three core businesses: care for the elderly (nursing homes, assisted living, home care), post-acute and rehabilitation care and mental health care (specialized clinics). It has more than 72,000 employees and welcomes more than 255,000 patients and residents each year.

https://www.orpea-group.com/

ORPEA is listed on Euronext Paris (ISIN: FR0000184798) and is a member of the SBF 120, STOXX 600 Europe, MSCI Small Cap Europe and CAC Mid 60 indices.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230111005890/en/

Investor relations

Orpea



Jean-Baptiste Roussille

Head of Investor Relations

j-b.roussille@orpea.net



Benoit Lesieur

Investor Relations Director

b.lesieur@orpea.net



Toll free tel. nb for shareholders:

+33 (0) 805 480 480

Investor relations

NewCap



Dusan Oresansky

Tel : 01 44 71 94 94

ORPEA@newcap.eu

Media Relations

Orpea/Image 7



Isabelle Herrier-Naufle

Directrice Relations Presse

Tel : 07 70 29 53 74

i.herrier-naufle@orpea.net



Charlotte Le Barbier

Image 7

Tel : 07 06 78 37 27 60

clebarbier@image7.fr

Source: ORPEA

FAQ

What is ORPEA's current financial restructuring plan?

ORPEA is negotiating the equitization of €3.8 billion in unsecured debt and planning a share capital increase of €1.3 billion to €1.5 billion.

How will the share capital increase affect ORPEA shareholders?

The share capital increase will result in massive dilution for existing shareholders who do not participate.

What is the status of ORPEA's negotiations with creditors?

Discussions are ongoing under a conciliation procedure, but the outcome cannot be guaranteed.